DraftKings in Canada received a substantial penalty in Ontario for being overly aggressive with their marketing campaigns. They were promoting enticing deals, such as two-for-one odds enhancements, which attracted the scrutiny of the Alcohol and Gaming Commission of Ontario (AGCO). However, in Ontario, there are limitations on broadly advertising such promotions. The AGCO has stringent regulations regarding the promotion of bonuses and incentives, with the goal of safeguarding individuals from excessive gambling advertisements. Their aim is to ensure that gambling remains enjoyable and doesn’t transform into an issue. Consequently, DraftKings had to relinquish a considerable sum—$100,000 Canadian dollars—for violating these regulations. The AGCO intends to convey a clear message that they are dedicated to responsible gaming practices and maintaining fairness for all parties involved.
Similar to other iGaming companies licensed in Ontario, DraftKings has the option to contest this financial penalty. They could pursue this course of action through the Licence Appeal Tribunal (LAT), a separate entity responsible for adjudicating on behalf of the Alcohol and Gaming Commission of Ontario (AGCO).
This situation is not unprecedented for operators within Ontario’s recently established regulated iGaming sector, as penalties have been imposed in the past. Both BetMGM Canada and PointsBet received fines earlier this year – $48,000 and $30,000 correspondingly, back in May.
Notably, the AGCO referenced infractions of Standard 2.05 when it disclosed the penalties imposed on BetMGM Canada and PointsBet, the same standard that DraftKings is alleged to have violated.
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